Leadership and Strategic Change

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Learning outcomes (1)
• Identify types of required strategic change.
• Analyse how organisational context might affect the
design of strategic change programmes.
• Undertake a forcefield analysis to identify forces
blocking and facilitating change.

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Learning outcomes (2)
• Identify and assess the different styles of leading
and managing strategic change.
• Assess the value of different levers for strategic
change.
• Identify the pitfalls and problems of managing
change programmes.

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Key elements in managing
strategic change

Diagnosis

Leading and Levers

managing for
change change

Managing
change
programmes

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Managing change – key issues
Four key premises:
Strategy matters – in identifying the need for change and the
direction of change.
Context matters – the right approach to change depends on
the circumstances.
Inertia and resistance – getting people to change from existing
ways of doing things is essential.
Leadership matters – good leadership of change at all levels is
needed.

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Diagnosing the change context

Types of change Context of change

Forcefield analysis

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Types of strategic change

Figure 14.2 Types of change

Source: Adapted from J. Balogun and V. Hope Hailey, Exploring Strategic Change, 3rd edition, Prentice Hall, 2007

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Types of strategic change
Four types of strategic change:
Adaptation – can be accommodated with the existing culture
and can occur incrementally.
Reconstruction – rapid change but without fundamentally
changing the culture.
Revolution – fundamental changes in both strategy and culture.
Evolution – cultural change is required but this can be
accomplished over time.

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The importance of context

Figure 14.3 The Change Kaleidoscope

Source: Adapted from J. Balogun and V. Hope Hailey, Exploring Strategic Change, Prentice Hall, 2007

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 Forcefield analysis

A forcefield analysis provides an initial view of change problems

that need to be tackled by identifying forces for and against
change.
Various concepts and frameworks are useful here:
 Mapping activity systems.
 Stakeholder mapping.
 The culture web.
 The 7-S framework.

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A forcefield analysis for the UK forestry
commission

Illustration 14.2

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 Strategic leadership roles

Leadership is the process of influencing an organisation (or group

within an organisation) in its efforts towards achieving an aim or
goal.
Three key roles in leading strategic change:
 Envisioning future strategy.
 Aligning the organisation to deliver that strategy.
 Embodying change.

N.B. Middle managers have a key role in leading change as

well as senior managers.

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Newcomers and outsiders
‘Outsiders’ can also play an important role in strategic change.
These could include:
• A new chief executive from outside the organisation can bring a
new perspective.
• New management from outside can also increase the diversity
of ideas.
• Consultants are used to help formulate strategy or to plan the
change process.

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Styles of strategic leadership
Situational leadership – successful strategic leaders are
able to adjust their style of leadership to the context they
face.
Two approaches:
• Theory E: the pursuit of economic value; top-down; ‘hard’
levers of change; emphasis on changes of structures and
systems, financial incentives, portfolio changes, downsizing.

• Theory O: the development of organisational capability;

emphasis on culture change, learning, participation in change
programmes and experimentation.

• A combination of the two approaches may be required and can

be beneficial.

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Styles of managing change

Education/
Delegation

Styles of
Participation Collaboration
Managing
Change

Direction Coercion

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Styles of managing change (1)
Education and delegation – Small group briefings to
discuss and explain things. The aim is to gain support
for change by generating understanding and
commitment.
Advantages – Spreads support for change. Ensures a
wide base of understanding.
Disadvantages – Takes a long time. For radical change it
may not be enough to convince people of the need for
change. Easy to voice support, then do nothing.

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Styles of managing change (2)
Collaboration – Widespread involvement of the
employees on decisions about what and how to
change.
• Advantages – Spreads not only support but
ownership of change by increasing levels of
involvement.
• Disadvantages – Time-consuming. Little control over
decisions made. May lead to change within existing
paradigm.

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Styles of managing change (3)
Participation – Involvement of employees in how to
deliver the desired changes. May include limited
collaboration over aspects of ‘how’ to change as well
as ‘what’ to change.
Advantages – Spreads ownership and support of
change, but within a more controlled framework.
Easier to shape decisions.
Disadvantages – Can be perceived as manipulation.

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Styles of managing change (4)
Direction – Change leaders make the majority of
decisions about what to change and how. Use of
authority to direct change.
Advantages – Less time-consuming. Provides a clear
change of direction and focus.
Disadvantages – Potentially less support and
commitment, and therefore proposed changes may
be resisted.

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Styles of managing change (5)
Coercion – Use of power to impose change.
Advantages – Allows for prompt action.
Disadvantages – Unlikely to achieve buy-in without
a crisis.

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Levers for change
A compelling case for change

Challenging the taken-for-granted

Changing operational processes and routines

Symbolic changes

Power and political systems

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 Organisational rituals and change

Table 14.2 Organisational rituals and change

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Political mechanisms in organisations

Table 14.3 Political mechanisms in organisations

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Change tactics
• Timing:
 Building on an actual or perceived crisis.
 Exploiting windows of opportunity.
 Symbolic signalling of time frames.

• Visible short-term wins – the demonstration of

such wins can galvanise commitment to the wider
change strategy.

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Turnaround strategy (1)
A turnaround strategy is where the emphasis is on
speed of change and rapid cost reduction and/or
revenue generation.

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Turnaround strategy (2)
Elements of turnaround strategies:
Crisis stabilisation.
Management changes.
Gaining stakeholder support.
Clarifying the target market(s) and core products.
Financial restructuring.

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Turnaround strategy

Table 14.4 Turnaround: revenue generation and cost reduction steps

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Managing revolutionary change
Managing change in such circumstances is likely to
involve:
• Clear strategic direction.
• Combining rational and symbolic levers.
• Multiple styles of change management.
• Working with aspects of the existing culture.
• Monitoring change.

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Managing evolutionary change
Managing change as evolution involves transformational
change, but implemented incrementally. This requires:
 An empowering organisation.
 Clear strategic vision.
 Continual change and commitment to experimentation.
 Identifying interim stages and targets.
 Use of irreversible changes.
 Sustained top management commitment.
 Winning hearts and minds.

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 Why change programmes fail

Research into why change programmes fail indicates seven main failings:
 Death by planning.
 Loss of focus.
 Reinterpretation of change in terms of current
culture.
 Disconnectedness.
 Behavioural (only) compliance.
 Misreading scrutiny and resistance.
 Broken agreements and violation of trust by management.

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Summary (1)
• Types of strategic change differ in terms of:
• extent of culture change required;
• incremental change or urgency
• Aspects of organisational context (as shown in the Change Kaleidoscope)
include:
the resources and skills that need to be preserved,
 the degree of homogeneity or diversity in the organisation,
the capability, capacity and readiness for change,
 the power to make change happen.
• Different approaches to managing change are likely according for different
types of change and context.
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Summary (2)
• Forcefield analysis is a useful means of identifying blockages to
change and potential levers for change.
• Situational leadership suggests that strategic leaders need to
adopt different styles of managing strategic change according to
different contexts and in relation to the involvement and interest
of different groups.
• Levers for managing strategic change need to be considered in
terms of the type of change and context of change. Such levers
include building a compelling case for change, challenging the
taken-for-granted, the need to change operational processes,
routines and symbols, the importance of political processes, and
other change tactics.

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Class room test
• Select one strategic change in your organization or any other
organization and discuss what “style of managing change”,
management applied and its repercussions.

(20 Marks)

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